HCL Tech on the surge

about 7 days ago

HCL Tech is the top gainer on the BSE since the opening bell today morning. From its close of Rs.1480, it opened 5% higher at Rs.1550 and went up further to Rs.1599.60. Its 52-week high is at Rs.2011.

The company did well on the earnings front. Here is a quick synopsis of the same:

Key Highlights

  1. Solid Revenue Growth: HCL saw mid-single-digit growth, driven by strong demand in digital engineering and cloud services.
  2. Profitability Improvement: Margins expanded sequentially, suggesting better operational efficiency or favorable pricing.
  3. Order Book: Deal wins were healthy, with new TCV (Total Contract Value) of over $2.3 billion, pointing to a strong future pipeline.
  4. Attrition Rate: Down to ~12%, indicating stabilization in the talent market.
  5. Geographic Performance: Strongest growth came from North America and Europe, while APAC was relatively flat.
  6. Verticals: BFSI and Healthcare continued to show resilience, while Manufacturing and Technology saw slower growth.

Guidance:

  • FY2026 Revenue Growth Guidance: 6–8% (in constant currency).
  • EBIT Margin Guidance: 18–19%.
1571.40 (+22.00)